Agricultural Services

Due to socioeconomic and environmental factors, the state of agriculture in Colorado concerns producers, lending institutions, and agribusinesses. This means that businesses and family entities associated with agricultural are facing new challenges that are forcing them to think of innovative ways to grow their business in an expanding, diversified economy. We see this as both an opportunity and a challenge to Colorado agriculture. Trends in agribusiness suggest increased flexibility of investment and the ability to take advantage of different opportunities when they present themselves. Business management techniques can help enhance your bottom line. Such practices may especially be appropriate for a state like Colorado where preserving open space can contribute to the general value of the land.

Dalby, Wendland agricultural services include:

• 1031 exchanges and conservation easements.
• Economic analysis of livestock operations in preparation for expert witness testimony.
• Estate and succession planning to pass property to family members and limit estate tax consequences;
• Income tax strategies specific to the agricultural industry, including the tax breaks related to natural disasters;
• Selling, exchanging and/or developing real estate;

Several of our professionals were raised on farms so they understand the lifestyles and issues of the ranchers and farmers and continue to involve themselves within local and state associations. We are members of Colorado Cattlemen's Association, Holy Cross Cattlemen's Associates, American Dairy Goat Association, Rocky Mountain Quarter Horse Association, and American Quarter Horse Association and are buyers at the annual 4H auctions at the Garfield County Fair.

 

Audit Services

In the complex and regulation-heavy business landscape of today, traditional audit responsibility has grown exponentially and many companies are shifting their audit services to firms with experienced professionals. Today's environment means businesses need trusted advisers more than ever. We are seeing companies shift their focus to cost management, risk, and future growth. Our audit team's main focus is to add value to your business while we adhere to the highest standards of professional integrity, objectivity, independence and technical excellence. We understand the need for trust and we take time to understand your business and the industry in which you operate so we can identify risks and opportunities beyond the traditional financial reporting function. Our range of audit and advisory services helps you achieve your business objectives, manage your risk and improve your business performance.

We provide audit and accounting services to a wide variety of Colorado governmental organizations across the state. Our clients include higher education, school districts, hospitals, towns and municipalities, small districts, government councils as well as housing authorities. In addition, we provide Office of Management and Budget (OMB) A-133 audit services to several of these government clients as well as non-profits. Our Firm believes that auditing is not fill-in work to be done outside of the tax seasons and our clients receive the benefits of having a full time audit department to use as a year round resource.

In addition, the audit department is supported by the entire Firm including seven offices in Western Colorado and more than 100 employees. This allows our clients to access a wide variety of expertise. Given the current economic climate, we believe this provides our clients the ability to use one firm for all of the accounting and consulting services, thus saving time and money. To provide for continued excellence in our audit and consulting services, our Firm is a member of both the Government Audit Quality Center (GAQC) and the Employee Benefit Audit Quality Center (EBPAQC) of the AICPA. Membership in the Quality Centers requires additional training for any employee working in the government or employee benefit sector as well as additional quality control policies for our internal processes and procedures. We are currently the only firm in Mesa County that is a member of the GAQC. Based on our 60-year history in the accounting, audit, tax and consulting fields, we have the procedures and processes in place to ensure our clients receive the highest technical and ethical services in the most efficient and cost effective manner.

 

Auto Dealer Services

The economy has completely changed the auto industry but tougher competitive environments and regulatory changes have also presented challenges that require dealership to draw on the expertise of accountants and industry players who significant depth and breadth of expertise in the industry. Having advisors who have valuable insight and knowledgeable in dealership finance, accounting, management, and taxation can make a difference on your bottom line.

We encourage potential clients to ask these questions when seeking a business consultant.

 

• Does your current CPA specialize in the auto industry?
• Does your CPA staff understand your industry?
• Does your CPA stay connected to the industry and stay on top of the issues you may have to face?
• Does your CPA give you solutions that have a payoff?

Our value-added services include:

 

• Computer consulting
• Cost segregation services (faster depreciation methods)
• Dealership valuations
• Fraud investigations
• LIFO inventory methods
• Litigation support
• Money management
• Risk management
• Wealth and succession planning

Our strategy is to provide you with a knowledgeable service team who offer the best of both worlds - traditional CPA services and exceptional dealer-specific value.

 

Bankruptcy and Bankruptcy Trustee Support Services

Taxation of Bankruptcy Estates is one of the more complex areas of the Tax Code. The current economic climate and recent court rulings have increased the complexity and managing bankruptcy related business matters require specialized knowledge and skills that span disciplines of intense analysis, computer forensics, and forensic accounting to reach a final resolution.

We have excess of 20 years of experience specifically working with Bankruptcy Trustees and Estates. We address bankruptcy engagements with a practical approach with an emphasis on providing a complete and accurate product while keeping the final result in focus in order to provide the service at a reasonable cost to the estate.

Proper planning for the income tax consequences of transactions can maximize the cash flow to the estate.

 

Bookkeeping Services

With the advent of technology, bookkeeping has become faster, but the processes and procedures require but payroll rules and regulations coupled with IRS laws require an experienced bookkeeper. Businesses can face huge losses due to lack of organization, mismanagement, and theft of finances.

From day-to-day bookkeeping services to a full-range suite of services, we can provide assistance with specific functions at our locations or yours. Our IT team can help you set up a point of sale station that will integrate and transfer data directly to QuickBooks or other services that include:

 

• Accounts Receivable and Accounts Payable Management to help you keep accurate financial records.
• Financial Statements and Management Reports
• Payroll and Transaction Processing
• QuickBooks Advisors (Proficient with all editions of QuickBooks including: Point of Sale & Contractors Editions including set up, training and ongoing support).

 

QuickBooks

We can help reduce your operating expenditure and give you the confidence that your business is observing payroll rules and regulations. Late payment of payroll taxes may result in severe penalties. The benefit of our bookkeeping services will help you focus on running your business.

 

Business Owner Succession Services

Planning for Succession

In today's fast-paced, hi-tech, ever-changing world, building a successful business that will provide the lifestyle that you and your family seek takes tremendous drive and dedication, and no small amount of luck. Successfully transferring is even more complex and must take into account such issues as:

 

• How to assess the fair market value of your business
• How to transfer to family members or sell to outsiders
• How to complete success family transfers and help ensure successful continuation
• How to structure the transfer to meet personal financial objectives and minimize adverse tax consequences

To address these issues, we have developed a comprehensive approach to addressing the issues affecting businesses and business owners considering a transition.

We help our clients manage each step through the process so that everything stays in context with your business and personal goals.

 

• Identify critical management succession issues.
• Recognize how the transaction will contribute to the personal financial goals and how it might impact your lifestyle.
• Judge how the transaction might impact estate planning objectives.
• Make sure the business strategy and plan drive value and personal income.
• Understand the impact on the business before and after the transaction.
• Consider the emotional and human issues that surround a sale.

We have built an organization around multiple disciplines, and have the experience and expertise to help you achieve your personal and business dreams, while minimizing the problems that can occur while the business is in transition.

Our process includes:

 

• Situation analysis
• Personal financial planning
• Business & strategic planning
• Management succession planning
• Ownership transition planning
• Estate planning

 

Business Valuation Services

Our Business Valuation service team provides supportable and timely valuation consulting services. These services are principally in the areas of merger, acquisition and divestment, financing, insurance claims, estate and gift tax, financial feasibility, goodwill impairment tests, and litigation support services.

We provide valuations of business enterprises, common and preferred stock, partnership interests, and limited liability company interests. We also provide solvency and fairness opinions. Our services add to the existing strengths of our client's organization as well as to our client's outside advisors. Valuation and economic analysis is a unique field. However, it is not unusual for us to work closely with other advisors, such as investment bankers, financial institutions, legal staff and litigators, who depend upon our work product as support for their activities.

Professional Capabilities and Credentials

Our Business Valuation service team has professional designations that include the following:

 

• Certified Public Accountants (CPA)
• Certified Financial Forensics (CFF)
• Certified Valuation Analyst (CVA)
• Certified Financial Planner (CFP)
• Personal Financial Specialist (PFS)
• Certified Fraud Examiner (CFE)

 

Construction Industry Services

Get DWC involved as soon as you begin to consider building, remodeling, expanding, or purchasing a facility. While construction companies must adhere to certain special tax regulations that are applicable only in that industry and also must comply with complex state and federal regulations, there are recent rulings in your favor that could help your bottom line.

We have numerous clients in the trades that include building material suppliers, construction companies, and specialty trade subcontractors.

Our construction client service team has the experience to assist with:

 

• Assistance with IRS Audits and Inquiries
• Bookkeeping services
• Budgets
• Cost Segregation Studies
• Financial Projections
• Financial statement audits, reviews, and compilations
• Financial statements for bonding or governmental contract purposes
• Information technology and systems and support
• Internal control reviews
• Operational audits
• Special rules available to residential home construction contracts
• With tax implications of long term contracts

Capital Planning

 

• Benchmarking
• Contractor Internal Controls
• Mergers & Acquisitions
• Risk Assessment
• Valuations

Information Technology Services

 

• Information Technology Assessment
• Proprietary Software Certifications, such as Quick Books Pro Advisors
• Software System Analysis

Cost Segregation Services

We will identify and reclassify project related costs currently classified as residential real or commercial property. This maximizes your cash flow by claiming accelerated depreciation on those reclassified assets for new construction projects, acquisitions, and existing facilities.

Project Benefits

Our Project Approach:

 

• Review project drawings and specifications
• Review approved contractor pay requests
• Develop a listing of assets
• Allocate project indirect costs
• Visit the facility
• Prepare a written report

Find out the financial benefits of hiring an accountant. Many clients realize significant cash flow and savings benefit by reclassifying project related costs.

 

Estate & Gift Tax Support Services

Federal Estate & Gift Tax is one of the more complex areas of the Tax Code. The issues are often complex and interrelated.

We have more than 60 years of experience specifically working with Trusts and Estates and because of our experience can address Federal Estate & Gift Tax engagements with the most practical and efficient approach.

Our Estate & Gift Tax Services include:

 

• Colorado & Multiple State Estate/Inheritance Tax Return preparation.
• Construction / reconstruction of accounting records.
• Estate & Gift Tax Planning.
• Federal Estate & Gift Tax Return preparation.
• Federal Generation Skipping Tax Return preparation.
• Internal Revenue Service audit representation.
• Prompt determination filing.
• State tax issues.

Services Provided To:

 

• Attorneys at Law
• Personal Representatives
• Executors / Trustees
• Individuals

Proper planning for Federal Estate & Gift Tax consequences can maximize cash flow to the trust or estate.

 

Financial Institutions Services

We provide a variety of services to the financial institution industry. The theme of our services focuses on the unique needs of each financial institution. We have assisted institutions in the organization stage, through growth and expansion, and the transition of ownership.

Assurance Services

 

• Attestation of internal controls over financial reporting
• Financial statement audits, reviews, and compilations
• Internal control reviews
• Operational audits

Tax Planning and Compliance

 

• Assistance with IRS audits and inquiries
• Cost segregation studies
• Estate and gift tax
• Tax planning
• Tax preparation

Consulting & Planning

 

• Allowance for loan loss
• Capital planning
• Financial projections & budgets
• Goodwill impairment tests
• Management succession plans
• Mergers & acquisitions
• Valuations

Regulatory Services

 

• Directors' Examinations
• Electronic Data Processing examinations
• FHLB Collateral Verification
• Internal audits
• Loan reviews and loan file inspections
• Operational audits
• Public Deposit Protection Act special procedures

 

Foreign Taxpayer Services

Foreign taxpayers face a complex set of tax reporting rules that are quite different from those for U.S. citizens and residents.

We provide accounting and tax services to clients from around the globe and many of these clients have investments and rental properties in the U.S. which require annual income tax reporting. Proper reporting each year, with knowledge of the rules for foreign taxpayers, can result in lower income taxes and fewer difficulties with the various government agencies which require periodic reports. For example, losses from the years your U.S. vacation property is rented out short-term to others, can offset gains from the sale of the property in a future year; however, special regulations require that you file timely tax returns in order to have those losses apply to the gain from the sale of the property. Proper income tax reporting for a U.S. property that is not rented out can allow you to add annual carrying costs on the property, such as property taxes and interest on a mortgage, to your cost basis, and thereby reduce the gain on a sale.

We have also provided many other services to foreign taxpayers, including representing them at condominium association meetings, appealing property tax valuations with the county, and representation before the IRS and other authorities.

 

Fraud and Forensic Services

The AICPA began developing its Certified in Financial Forensics (CFF) certification in 2008.

The AICPA has recognized forensic accounting services to generally involve:

 

 

• The application of specialized knowledge and investigative skills possessed by CPAs;
• Collecting, analyzing, and evaluating evidential matter;
• Interpreting and communicating findings in the courtroom, boardroom or other legal/administrative venue.

The American Institute of Certified Public Accountants (AICPA) established the Accredited in Business Valuation (ABV) Credential program in 1998 for CPAs who specialize in valuation. The ABV Credential is granted exclusively to CPAs who demonstrate considerable expertise in valuation through their knowledge, skill, and experience.

 

• Small businesses are the most vulnerable to occupational fraud and abuse. The average scheme in a small business causes $190,000 in losses.
• The most common method for detecting occupational fraud is through tips from employees, customers, vendors, and anonymous sources. The second most common method of discovery is by accident.
• The typical occupational fraud perpetrator is a first-time offender.
• All occupational frauds fall into one of three categories: asset misappropriations, corruption, or fraudulent statements.
• Over 91% of occupational frauds involve asset misappropriations. Cash is targeted 88% of the time.

The Fraud and Forensic Division of Dalby, Wendland & Co., P.C. specializes in a variety of fraud and forensic services and several of our professionals are certified in Financial Forensics (CFF) with the American Institute of Certified Public Accountants (AICPA).

Fraud Prevention Services

 

• Computer Controls and Risk Analysis
• Fraud Awareness Training
• Internal Control Evaluation
• Management Practices Review
• Organizational Structure Analysis
• Personnel Policies and Procedures Review

Fraud Detection

 

• Asset Verification
• Business Disputes
• Discovery of Hidden Assets
• Financial Statement Fraud

Fraud Investigation

 

• Litigation Support

Forensic Accounting

 

• Financial Statement Analysis, Ratio Analysis, and Industry Statistics
• Record Reconstruction

The Fraud and Forensic specialists at Dalby, Wendland & Co., P.C. can provide discreet and confidential services designed specifically for your needs and circumstances.

 

 

Home Owner and Condominium Association Services

As condominium living becomes increasingly popular, homeowners need to be aware of some special tax considerations. Property taxes on condo or cooperative units reflect the size of each unit and each unit owner's share of common elements. Be sure to check your statement to make sure you've been assessed properly.

If your condominium's common elements are upgraded, such as new windows throughout, your share of the expense can be added to your unit's cost basis for tax purposes. Such improvements add to the value of your unit so they increase the basis (original cost plus improvements). Effectively, you'll have less profit when you sell and will owe less tax on capital gain if you exceed your $250,000 limit. Save your association's annual report, which should list common element improvements and their cost per unit. Some of our other related services that might be helpful:

Attestation Services

Audit, Review and Compilation Services.

Bookkeeping Services

Assistance with owner billing and financial reporting

Capital Budgeting

Associations are now required to report to their owners annually about the expected future costs to replace the major capital elements of the association. For example, this reporting requirement would have the association estimate the remaining useful life of the roof and the estimated cost to replace it at the end of its useful life, and compute the funds that would be required to be set aside annually to meet that funding requirement. We can assist you in meeting this reporting requirement.

Special Studies and Cost Allocations

Several of our Association clients have complex issues to fairly allocate common costs to the Association members. We find this is often true when common services are used differently among the members. For example, at one client's, the first floor of the association was commercial businesses, including a restaurant, and the upper floors were residential units. We performed a cost allocation study for the board of directors to recommend a more fair allocation methodology for the costs of common services, such as trash collection and common utilities. We find that an outside, objective look at such divisive issues can help keep the decisions of the board of directors more palatable to the owners.

Tax Reporting

The homeowners' association must file an income tax return to report any income, such as interest income on the association's bank account. We can help you decide which form is most appropriate for your association.

 

Hospitality Services

The hospitality industry faces extremely complex real and personal property tax issues. Jurisdictional assessment practices overwhelmingly ignore business and intangible value in formulating real and personal property assessments and improper classification of assets can result in double taxation such as:

 

• Non-taxable assets included in assessments
• Overpayment of personal property taxes
• Overpayment of real property taxes

We can help you properly classify assets among real, personal and intangible categories resulting in the elimination of double taxation.

Tax Reporting

We are constantly reviewing new tax laws and legislation to help our clients take every possible tax break. For example, restaurants and other guest service businesses have tips for their employees as a usual part of customer transactions. We can assist you in proper reporting of tips in order to reduce the chance of an audit because of improper reporting and can ensure that you receive the "tip credit" on your income tax returns for the social security and Medicare taxes your business pays on reported tips.

Project Development

Understanding tax ramifications of building a new property or improving an existing property is critical to hoteliers and the income generated by the improvements. We provide accurate pre-development tax impact analyses that can result in better management of financial assumptions and increased return on investment. For example, correctly classifying equipment and other personal property within a new or improved building can dramatically accelerate depreciation deductions and reduce the income taxes in the early years of a completed development project.

 

Information Technology Services

Staying on the cutting edge of technology is critical in the 21st Century business world. Not only does our firm implement the most secure and effective technology - we also educate our client on technology. We offer these related services:

 

• Anti-Virus Implementation
• Backup & Disaster Recovery Solutions
• Broadband/Dial-Up Connectivity
• Email Solutions and Spam Filtering
• Emergency Response
• General Computer & Software
• Hardware & Software Installation
• Network Security Consulting
• Remote Access Solutions
• System & Network Design
• System Administration
• System Documentation

Our highly qualified team can design, build, support and document a network system customized to your specific business needs. From a simple home-office to a complete wide area network environment, we have the experience to assist in determining what is best for your organization. Our specialties include Microsoft Operating System Windows Server with Terminal Services and Citrix XP. We also have the knowledge and experience to assist with the design and setup of your Accounting system. If you plan on making a transition to a new accounting system or need assistance with your present system or procedures, our IT team can help.

 

Litigation Support Services

Our litigation support service team includes professionals with extensive experience in a variety of disciplines and industries. In addition to professional designation as a Certified Public Accountant, other designations include Certified Fraud Examiner (CFE), Certified Financial Forensics (CFF), and Certified Valuation Analyst (CVA). We use a multidisciplinary approach to make available the best talent we have to assist with a particular case. We can also draw on support from our association in the NETWORK.

As experienced litigation professionals, we understand the dispute resolution processes are sensitive to the pressure on litigation counsel. We can react quickly to deadlines and last-minute calendar changes. We are there to make counsels' job less stressful. Our litigation team services are designed to provide a timely, thorough, response. Often litigators need competent, well-spoken financial experts to convey the complicated economic aspects of their cases and are often called as expert witnesses in court cases.

Our litigation support services include:

 

• Application of GAAP - Generally Accepted Accounting Principles
• Contract interpretations and disputes
• Economic damages in wrongful terminations
• Expert testimony
• Fraud investigation, detection and deterrence
• Lost profits and economic damages analysis
• Risk management services
• Valuation of business interests

 

Manufacturing/Distribution Services

Our goal is to help you create value within your industry today and for the future. Success within companies today has many elements and to achieve and maintain long-term success we focus on production, management, and finance. We assist management teams in assessing and improving their business processes. This may include ways to optimize product and process quality, reducing production and material costs, and shortening design development time, as well as improving management systems and financial processes.

We strive to understand what our clients want to accomplish, both from a business and personal perspective because it enables us to help them integrate their core competencies and their vision for the future with strategies for improving overall performance.

It is important for every business to create transferable value for the future. Implicit in all of management's efforts is the ultimate desire to convert the value of their companies into wealth. Whether business owners are challenged by the start-up, growth, or mature phase of their companies, or are evaluating exit strategies, we can assist in establishing value for the future by creating a formula for success today.

Our Manufacturing and Distribution Services Include:

 

• Business process consulting
• E-commerce consulting
• Financial planning
• Operations reviews
• Strategic planning

Research services - Business Market and Competitive Information

Finance

 

• Assessment and risk management
• Business assurance services
• Corporate finance
• Cost of doing business studies
• Cost segregation analysis
• Financial benchmarking
• Income tax planning
• License and royalty consulting and assurance
• Public offering/private financing
• Research and development tax credit planning

People

 

• CEO coaching
• Management skills consulting training
• Succession planning

Business owners' succession service

 

• Business valuations
• Estate planning
• Investment advisory consulting
• Mergers and acquisitions
• Personal wealth services
• Planning for exit strategies
• Retirement planning

 

Real Estate Development and Investment Services

Real Estate Taxation

Taxation of real estate is one of the most complex areas of the tax code. Depreciation rules change continually, and an improper set up of asset acquisitions can significantly delay or even lose depreciation deductions. Real estate development is even more complex, and the tax consequences of poor tax planning can make or break a project.

We have more than 60 years of experience in dealing with all aspects of real estate planning and taxation, from setting up a simple rental investment to handling a multi-phase, multi-entity, multi-year, multi-million dollar real estate development.

Our Real Estate Development and Investment Services include:

 

• Assistance with obtaining creative lender financing.
• Assistance with purchase decisions using cash flow analysis and present value computations.
• Business planning to maximize available incentives in existing locations.
• Choice of entity decisions.
• Cost Segregation studies to maximize the depreciation benefits on real estate used in your business or held for investment.
• Planning and assistance regarding interest capitalization vs. deduction decisions.
• Planning and assistance to minimize the impact of Section 263A ‚ÄúUniform Capitalization‚Äù rules.
• Planning and reporting of Section 1031 ‚ÄúLike Kind Exchange‚Äù transactions.
• Planning for passive activity loss rules.
• Planning for the use of estimated costs to complete under Revenue Procedure 92-29 as it relates to the development and sale of residential lots.
• Selection of depreciation methods.

Proper planning for real estate tax consequences can maximize the cash flow from your real estate activity. Let the professionals at DWC show you how.

 

Taxes

In today's complex and ever-changing tax environment, many businesses benefit from the Dalby, Wendland team of professionals. As the authorities become increasingly aggressive in enforcing their tax laws, experienced professionals are more essential than ever in assessing your tax exposure. We offer extensive experience in many categories of federal, state, and local taxes:

Income Taxes

 

• Ongoing research of the intricate rules regarding non-business income, passive loss rules, hobby loss vs. business loss rules, and many similar situations.
• Reducing income taxes through tax saving opportunities, addressing complex and changing rules, legislation, and court cases.
• Tax return preparation services.

Tax Incentives

 

• Business planning services to maximize your available incentives for existing locations, future expansions, or site selection decisions.
• Experience at providing ongoing consulting in the ever-changing environment of governmental authorities.

Multi-State Taxes

 

• Determining sufficient nexus for income tax filing for operating in a multi-state environment.
• Keeping the overall state income tax burden as low as possible, while complying with the complex multi-state rules and calculations.

Payroll Taxes

Experience in all aspects of payroll tax issues, from planning through processing to filing.

Sales and Use Taxes

 

• Identifying difficult changes in the law and the available incentives, especially as companies expand into new communities.
• Examinations of past reporting practices generate refund opportunities.

 

Vineyard and Winery Services

The Grand Valley has proved to be a natural wine-producing area with the ideal soil and climate. There are tax issues of specific importance to the wine industry. The Internal Revenue Service released a report which was, in effect, a tax compliance checklist for use by IRS personnel in selecting winery and vineyard tax returns to audit. The suggestion is that winery and vineyard operations should exercise particular care in ensuring compliance with federal income tax accounting rules.

Tax accounting rules such as:

 

• Costs and expenses must be taken into account under the proper method of accounting; for wineries, this method usually is the uniform capitalization method (UNICAP).
• Income from a vineyard's sale of grapes to a related winery must not be improperly deferred; ordinarily, if deferral of such income is allowed, it is limited to the year following the year of sale.
• Grape growing costs generally must be capitalized and, thus, cannot be taken into account for tax purposes prior to the time income from the sale of the grapes is subject to taxation.
• Among others, the following vineyard operations must be capitalized:
  
  • Costs associated with designing or developing labels and packages must be capitalized and amortized over a 15-year period.
  • Deductions taken with respect to personal residences located on winery or vineyard property must be authorized under the Internal Revenue Code.
  • Direct cost of vines
  • Fumigation costs
  • Labor and indirect costs of planting vines
  • Proper depreciation periods must be used in determining depreciation deductions.
  • T-budding expenses
  • Vine replacement costs (engineering and design of new vineyard, preparation of land for replanting, planting and installation, purchase of new vines, purchase of irrigation equipment and trellis system.)